Rana Plaza Arrangement

On April 24th 2013 1134 people were killed and hundreds were injured when the Rana Plaza building in Savar, Bangladesh collapsed. The unprecedented scale of the disaster meant a coordinated, systematic approach was required to ensure the victims, their families and dependents would not have to endure ill-health and financial hardship resulting from the death of a family member or life changing injuries.

In September 2013 representatives from the government, the garment industry both locally and internationally, trade unions and non-governmental organisations, came together to form the Rana Plaza Coordination Committee. With the UN agency International Labour Organisation (ILO) acting as a neutral chair, their purpose was to develop a comprehensive and independent process that would deliver support to the victims, their families and dependants in a predictable manner consistent with international labour standards. This process was agreed in late 2013, and established through an agreement known as “the Arrangement.”

The Arrangement has established a claims process, which will be implemented by a range of local organisations and international experts, who will support victims, their families and their dependants to submit claims, assess the level of payments to be provided to each beneficiary, undertake medical assessments and provide follow up support where needed. These payments will be funded through the Rana Plaza Donors Trust Fund, which is open to contributions from any organisation, company or individual wishing to support the delivery of financial and medical support to the Rana Plaza families.

What is the Rana Plaza Coordination Committee and who is involved?

The Coordination Committee is a multi-stakeholder body tasked with developing and overseeing the Arrangement. It includes representatives from the Bangladesh government, the Bangladesh industry, global brands and retailers, Bangladeshi and international trade unions and Bangladeshi and international Non- Governmental Organisations (NGOs). The UN agency International Labour Organisation (ILO) acts as a neutral chair.

What is “the Arrangement”?

The Arrangement provides a single approach for establishing the amount of financial support and level of medical care to be provided to the victims of the disaster, consistent with international labour standards concerning employment injury benefits (ILO Convention No.121). It is in the form of a practical agreement, signed by all major stakeholders, which lays out steps for the development and implementation of such an approach. It has been signed by leading buyers (Primark, Loblaw, Bonmarche, El Corte Ingles), the Bangladesh Ministry of Labour, Bangladesh Employers’ Federation (BEF), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), IndustriALL Bangladesh National Council, Bangladesh Institute for Labour Studies (BILS), Industriall Global Union and Clean Clothes Campaign.

How will awards be calculated?

Each beneficiary will receive payments based on their individual circumstances and needs. Each claim will be independently assessed and calculated, based on a formula developed by actuarial experts in line with standards embedded in the ILO Convention No. 121. The assessment will consider both financial and medical needs, both of which will be covered in the final award.

How do victims, their families and their dependants make a claim?

The claims process has been designed so it is easily accessible and will ensure payments to beneficiaries are calculated in a way that is consistent, transparent and fair. The process will include an assessment of losses incurred by each family, assessment of medical needs for injured workers and the provision of appropriate medical care where needed. Advice and support will provided to families wishing to make a claim, so that they understand the process and can raise any questions and concerns they may have. The process will be overseen by the Coordination Committee, and implemented with the support of independent commissioners and externally contracted services.

You can make a difference!

Contribute to the Rana Plaza Donors Trust Fund

An international Rana Plaza Donors Trust Fund has now been set up to receive voluntary donations from donors from around the world. The Fund is open to any company, organisation or individual that wishes to contribute as a way of expressing solidarity and compassion with the Rana Plaza victims. The fund will be used to finance payments to the victims of the Rana Plaza disaster, their families and dependants which will be calculated according to their losses, and distributed using the mechanism established under the Arrangement. A local bank designated to receive transfers from the Trust Fund will provide payments directly to the beneficiaries ́ bank accounts